Mexco Energy Corporation Reports Profitable First Quarter and Property Developments

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Mexco Energy Corporation

Nov 13, 2014, 06:11 ET

MIDLAND, Texas, Nov. 13, 2014 /PRNewswire/ -- Mexco Energy Corporation (NYSE MARKET: MXC) today reported net income of $86,256 for the quarter ending September 30, 2014, a 55% decrease from $194,051 for the quarter ending September 30, 2013.    

Operating revenues in the second quarter of fiscal 2015 were $1,006,099, a 10% decrease from $1,121,446 for the same quarter of fiscal 2014.      

The average sales price for the quarter ending September 30, 2014 was $7.26 per Mcfe compared to $7.84 per Mcfe for the quarter ending September 30, 2013, a decrease of 7%.  Oil production increased 3% and gas production decreased 7% during the second quarter of fiscal 2015 as compared to the second quarter of fiscal 2014.

For the six months ended September 30, 2014, the Company reported net income of $105,310, a 50% decrease from net income of $210,182 for the six months ended September 30, 2013.  Operating revenues decreased 4% to $2,023,932 for the six months ended September 30, 2014 from $2,117,971 for the same period of fiscal 2014. 

The average sales price for the six months ended September 30, 2014 was $7.54 per Mcfe compared to $7.54 per Mcfe for the six months ended September 30, 2013.  Oil production increased 1% and gas production decreased 7% for the six months ended September 30, 2014 as compared to the same period of fiscal 2014. 

Tammy McComic, President of the Company stated, "Natural gas price increases should have a positive effect on our earnings in the coming months.  Our reserves as of year-end March 31, 2014 were 68% natural gas.  We have recently increased our emphasis on acquiring natural gas reserves in expectation of better natural gas prices."

Mexco Energy Corporation, a Colorado corporation, is an independent oil and gas company located in Midland, Texas engaged in the acquisition, exploration and development of oil and gas properties.  For more information on Mexco Energy Corporation go to www.mexcoenergy.com.

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Mexco Energy Corporation cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. These risks include, but are not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, exploration risks, uncertainties about estimates of reserves, competition, government regulation, and mechanical and other inherit risks associated with oil and gas production.  A discussion of these and other factors, including risks and uncertainties, is set forth in the Company's Form 10-K for the fiscal year ended March 31, 2014.  Mexco Energy Corporation disclaims any intention or obligation to revise any forward-looking statements.


Mexco Energy Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)



September 30,

March 31,



2014

2014

ASSETS





Current assets




Cash and cash equivalents

$        154,986

$      156,082

Accounts receivable:





Oil and gas sales

601,195

628,098

Trade

9,672

18,144

Prepaid costs and expenses

104,860

28,804

Derivatives – Short-term

3,010

-


Total current assets

873,723

831,128







Property and equipment, at cost




Oil and gas properties, using the full cost method

36,415,229

35,460,741

Other

98,401

94,356

Accumulated depreciation, depletion and amortization

(19,098,685)

(18,475,174)


Property and equipment, net

17,414,945

17,079,923







Other noncurrent assets

19,692

7,239


Total assets

$   18,308,360

$ 17,918,290






LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities




Accounts payable and accrued expenses

$        343,266

$      257,431

Income tax payable

-

6,500

Derivative instruments

-

44,981


Total current liabilities

343,266

308,912





Long-term debt

2,600,000

2,425,000

Asset retirement obligations

945,733

926,577

Deferred income tax liabilities

850,546

858,449


Total liabilities

4,739,545

4,518,938







Commitments and contingencies











Stockholders' equity




Preferred stock - $1.00 par value;





10,000,000 shares authorized; none outstanding

-

-

Common stock - $0.50 par value; 40,000,000 shares authorized;





2,104,266 shares issued and 2,038,266 shares outstanding 







as of September 30, 2014 and March 31, 2014, respectively 

1,052,133

1,052,133

Additional paid-in capital

6,985,798

6,921,645

Retained earnings

5,871,876

5,766,566

Treasury stock, at cost (66,000 shares) 

(340,992)

(340,992)

Total stockholders' equity

13,568,815

13,399,352


Total liabilities and stockholders' equity

$   18,308,360

$ 17,918,290









Mexco Energy Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended

Six Months Ended



September 30

September 30



2014

2013

2014

2013

Operating revenue:







Oil and gas

$      987,942

$ 1,108,102

$1,994,597

$ 2,092,371

Other

18,157

13,344

29,335

25,600

Total operating revenues

1,006,099

1,121,446

2,023,932

2,117,971










Operating expenses:







Production

326,571

312,954

637,349

621,590

Accretion of asset retirement obligation

4,710

11,020

9,544

21,937

Depreciation, depletion, and amortization

322,696

298,489

623,511

593,522

General and administrative

291,994

286,615

642,330

598,085

Total operating expenses

945,971

909,078

1,912,734

1,835,134










Operating profit

60,128

212,368

111,198

282,837










Other income (expenses):







Interest income

2

105

4

107

Interest expense

(15,776)

(18,202)

(31,546)

(38,332)

Gain (loss) on derivative instruments

51,380

(59,295)

17,751

(86,687)

Net other income (expense)

35,606

(77,392)

(13,791)

(124,912)










Earnings before provision for income taxes

95,734

134,976

97,407

157,925










Income tax expense (benefit):







Current

-

-

-

-

Deferred

9,478

(59,075)

(7,903)

(52,257)



9,478

(59,075)

(7,903)

(52,257)










Net income

$      86,256

$  194,051

$   105,310

$  210,182






















Earnings per common share:







Basic

$          0.04

$        0.10

$         0.05

$        0.10

Diluted

$          0.04

$        0.10

$         0.05

$        0.10










Weighted average common shares outstanding:







Basic

2,038,266

2,036,866

2,038,266

2,036,866

Diluted

2,053,158

2,039,108

2,054,003

2,038,800

SOURCE Mexco Energy Corporation